Switch to a Better Commercial Mortgage Deal

A commercial remortgage replaces your existing commercial mortgage with a new deal from either your current lender or a different one. It applies to non-residential properties such as offices, shops, warehouses, industrial units and mixed-use buildings. The process lets you secure a better interest rate, release equity from your property, change your repayment term or switch to a lender with more suitable criteria. Most commercial remortgages are not regulated by the FCA because they involve business-purpose lending on non-residential property.

Commercial remortgages differ in several key ways. They typically require higher deposits with maximum LTV capped at 70-75% versus 90-95% for residential. Affordability is assessed using debt service coverage ratios and business accounts rather than personal income multiples. Interest rates are higher, usually 5.25% to 9.00% compared with 4% to 6% for residential. The process takes longer at 6 to 12 weeks versus 4 to 8 weeks. Most commercial deals fall outside FCA regulation, meaning fewer standardised consumer protections apply.

In mid-2026, indicative commercial remortgage rates range from 5.25% to 9.00% depending on borrower type and LTV. Owner-occupier rates start from around 5.25% at low LTV, rising to 8.50% at 75% LTV. Investment property rates are typically 0.5% to 1.0% higher across the same LTV bands. These are indicative ranges because commercial rates are negotiated individually based on property type, financial strength and loan size. A specialist broker can often secure rates below published ranges for strong applications.

Yes, provided your property value has increased or you have repaid enough of the original mortgage to create headroom within lender LTV limits. Most commercial lenders allow cash-out refinancing up to 70-75% of the current property value. For example, if your property is worth 800,000 pounds and your outstanding mortgage is 400,000 pounds, you could potentially borrow up to 560,000 pounds at 70% LTV, releasing 160,000 pounds in equity for business investment, property acquisition or other commercial purposes.

A straightforward commercial remortgage typically completes within 6 to 12 weeks. The timeline breaks down roughly as initial enquiry and deal comparison (1-2 weeks), application and document submission (1-2 weeks), property valuation (2-3 weeks), legal work and due diligence (3-4 weeks), and completion (1 week). Complex cases involving multiple properties, non-standard structures or adverse credit histories can take 12 to 16 weeks. Having all documentation prepared before you start and choosing a responsive solicitor helps reduce delays.

Most mainstream commercial lenders cap LTV at 70% to 75% for remortgage applications. Specialist lenders may offer up to 80% LTV for strong cases with excellent trading history, high rental coverage or desirable property types. LTV limits also vary by property sector: standard offices and retail units typically qualify for the highest ratios, while specialist properties like care homes, hotels or petrol stations may be restricted to 60-65% LTV. Your equity position directly affects the commercial remortgage rates available to you.

You are not legally required to use a broker, but the commercial mortgage market does not operate like the residential market. Products are not listed on comparison websites, and many specialist lenders only accept applications through intermediaries. A whole-of-market broker accesses a wider range of lenders, negotiates rates on your behalf and manages the application process. Broker fees are typically 0.5% to 1% of the loan or a fixed fee, though many commercial remortgage brokers are paid directly by the lender on completion.

An early repayment charge is a fee your current lender charges if you repay your mortgage before the agreed rate period ends. Commercial ERCs typically follow a sliding scale: 5% of the outstanding balance in year one, 4% in year two, 3% in year three, decreasing to 1% by year five. On a 500,000 pound mortgage, a 3% ERC would cost 15,000 pounds. Always check your ERC position before remortgaging, as the charge can significantly affect whether switching to a new deal is financially worthwhile.